A homeowner experiencing financial hardship applies for debt relief loan from the government by filling out the Request for Mortgage Assistance form and sending it with proof of income to his lender, states the Department of the Treasury. The form and instructions are available at the Making Home Affordable website at makinghomeaffordable.gov.
The debt relief loan is known as Home Affordable Modification and is one of many assistance programs available, including lowering monthly payments or interest rates, states the DOT. The Request for Mortgage Assistance form provides information about the home and the owner's financial situation to the lender. The form includes a certification that the borrower has not been convicted of any crimes related to mortgage or real estate transactions in the past 10 years.
The borrower authorizes his lender to obtain copies of his most recent tax return transcripts from the Internal Revenue Service. A borrower who has filed Form 1040 fills out Form 4506T-EX to provide this authorization. One who has not filed a tax return fills out 4506-T to permit the lender to verify this fact, according to the DOT instructions.
Since the lender needs to verify that the borrower is able to make the modified loan payments, the borrower is required to supply proof of his income. The borrower receiving a salary sends in his two most recent pay stubs, and a self-employed borrower sends the most recent profit-and-loss statement, notes the DOT.